On April 30, 2009, a three-year insurance policy was purchased for $18,000 with coverage to begin immediately. What is the amount of insurance expense that would appear on the company's income statement for the year ended December 31, 2009?
a. $500.
b. $4,000.
c. $6,000.
d. $14,000.
e. $18,000.
Answer: B
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